Nuffield Health’s annual Healthier Nation Index survey has revealed which British workers are most affected by the cost of living crisis.

The study found that 38.24 percent of full-time workers and 42.69 percent of part-time workers feel their financial health has worsened compared to previous years. 62.56 percent of full-time workers and 60.81 percent of part-time workers also admitted that the cost of living or a change in their personal finances had negatively impacted their mental and physical health in the past 12 months.

According to Mind, the inability to afford everyday necessities such as food, fuel and housing costs can lead to mental health problems. Women were found to be more likely to be financially disadvantaged: 64.38 percent of female respondents agreed that the cost of living had an impact on their mental health, compared to 53.40 percent of men.

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However, according to responses from male workers, their attitudes towards the cost of living and its impact on mental health have not improved over the past year either. In the 2023 survey, 50.65 percent of male respondents agreed that the cost of living had an impact on their mental well-being, but this year that figure has increased to 53.4 percent.

Unsurprisingly, salary was also a cause of financial worry, with the lower the salary, the higher the percentage of poorer financial health. 66.17 percent of those earning less than £15,000 were affected, followed by those earning between £15,001 and £25,000, with 64.16 percent expressing concern.

Northern Ireland is the region most affected by the cost of living and concerns about financial health, with 63.68 percent of respondents saying they felt affected, followed by the North East with 62.58 percent and Wales with 60.98 percent.

The industries in which the cost of living has the greatest impact on employees include sales, media and marketing: Here, 75.76 percent of employees surveyed agree that the cost of living has a negative impact on their mental health.

The healthcare sector was the second most affected sector, with 65.46 percent of workers saying their mental health had been affected by the financial burden. In the architecture, engineering and construction sectors, 63.88 percent of workers were affected.

Nuffield Health’s research highlights the need for managers to rethink the way they structure their companies and the benefits they offer their employees. Gosia Bowling, National Lead for Emotional Wellbeing at Nuffield Health, explains what managers can encourage in the workplace to support financial health and inevitably improve mental health too…

#1 Equal pay

Ensuring that all employees are fairly compensated for their work can help reduce financial stress and help them afford essentials. Fair pay can also promote a sense of appreciation and recognition, boosting morale and job satisfaction. At the same time, ensuring pay equity can minimize resentment and create a more harmonious work environment.

#2 Equal opportunities for advancement

Managers should create clear and fair career paths, as this can motivate employees and increase their engagement at work. Equal opportunities for advancement also increase employee retention and expand the pool of employees in leadership positions, allowing for more balanced and effective decision-making.

#3 A transparent workplace culture

Clear communication and transparency in the workplace can build trust between employees and employers and reduce fears about responsibility and job security. To establish a more open and honest company culture, employers should hold regular one-on-one meetings with their employees where employees can talk about financial stress and its impact on their mental health. However, it is important to remember that while internal support is well received by many, others may require more confidentiality when it comes to matters as private as their financial situation or may not want to discuss it with anyone they work with.

Employers should therefore point out external sources of help, for example online advice centres such as “Mental Health and Money Advice” or online and telephone helplines run by mental health organisations such as “Mind” or “Samaritans”.

#4 Access to support

In addition to speaking directly to employees, offering personalised wellbeing services tailored to individual needs can ensure they receive the most relevant support. Companies can help with stress and personal issues through services such as employee assistance programmes (EAPs) and cognitive behavioural therapy (CBT). EAPS provide direct, confidential access to experts who can support individuals experiencing emotional distress. CBT can teach techniques such as focusing on what you can control and developing a better relationship with finances.